Welcome to the DC Today, your daily market synopsis of the Dividing Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets.

Hello and welcome to the Thursday edition of the DC today. A little sell-off in the markets today. The NASDAQ down another 1.8%.

The S&P down 1.65.

And then the Dow itself was down about 1%, 370 points.

So you really are looking right now at a stock market that is entirely following the bond

market.

And what's really interesting is that the yield curve, which has been very inverted, uninverted

quite a bit today.

Now it's still inverted, but what I mean is the severity of the inversion came in quite a bit today. Now it's still inverted, but what I mean is the severity of the inversion came

in quite a bit. As the short end of the curve basically didn't move, you know, 90-day bonds,

one year, you know, short-term, those yields didn't move and the longer end yields went up about

15 basis points. you got to near

four and a half percent on the 10 year Treasury so really you're getting tightening

in financial conditions in in terms of liquidity cost to capital from the bond market

even where the Fed has chosen to pause at least you're getting that from the long

end of the curve I am starting to wonder I need to do more analysis about it I

may end up deciding to turn this into my Dividend

Cafe talk tomorrow, my Dividend Cafe writing. If quantitative tightening, which has been

largely ignored throughout this tightening process, which has largely been assumed to be benign,

but has been running as a two-headed monster with the Fed's 525 basis point hiking

of the Fed funds rate if perhaps what we're starting to see now is really the impact

of quantitative tightening.

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